Coupa Software Reports Financial Results for the First Quarter of Fiscal 2019

Record Quarterly Revenues of $56.4 million and Free Cash Flows of $11.5 million

Cumulative Spend Under Management Surpasses $745 Billion

SAN MATEO, Calif., June 04, 2018 (GLOBE NEWSWIRE) -- Coupa Software (NASDAQ:COUP), a leader in business spend management (BSM), today announced financial results for its first fiscal quarter ended April 30, 2018.

"We delivered strong Q1 financial results, including 40% year-over-year subscription revenue growth, positive non-GAAP operating income, and positive free cash flows," said Rob Bernshteyn, CEO of Coupa. "On the business front, we expanded our customer base by adding blue chip and high growth customers, and we saw several marquee customers go live. We believe we are well positioned to deliver on our business and financial objectives for the fiscal year." 

Fiscal First Quarter Results:

  • Total revenues were $56.4 million, an increase of 37% compared to the same period last year. Subscription revenues were $50.0 million, an increase of 40% compared to the same period last year.
     
  • GAAP operating loss was $12.1 million, compared to a loss of $10.4 million for the same period last year. Non-GAAP operating income was $0.3 million, compared to a loss of $4.6 million for the same period last year.
     
  • GAAP net loss was $15.5 million, compared to a loss of $10.0 million for the same period last year. GAAP net loss per basic and diluted share was $0.28, compared to a loss of $0.20 for the same period last year. Non-GAAP net loss was $0.5 million, compared to a loss of $4.5 million for the same period last year. Non-GAAP net loss per basic and diluted share was $0.01, compared to a loss of $0.09 per basic and diluted share for the same period last year.
     
  • Operating cash flows and free cash flows for the quarter ended April 30, 2018, were $12.6 million and $11.5 million, respectively.

Business Outlook:

The following forward-looking statements reflect Coupa's expectations as of June 4, 2018. Guidance is based on the new revenue recognition standard ASC 606, which Coupa adopted on February 1, 2018.

Second quarter of fiscal 2019:

  • Total revenues are expected to be between $56.0 and $57.0 million.
  • Subscription revenues are expected to be between $51.0 and $52.0 million.
  • Professional services and other revenues are expected to be approximately $5.0 million.
  • Non-GAAP loss from operations is expected to be between $4.5 and $5.5 million.
  • Non-GAAP net loss per share is expected to be between $0.08 loss and $0.10 loss per share.
  • Basic and diluted weighted average share count is expected to be approximately 56.8 million shares.

Full year fiscal 2019:

  • Total revenues are expected to be between $233.0 and $236.0 million.
  • Non-GAAP loss from operations is expected to be between $8.0 and $11.0 million.
  • Non-GAAP net loss per share is expected to be between $0.14 loss and $0.19 loss per share.
  • Basic and diluted weighted average share count is expected to be approximately 57.2 million shares.

See the section titled "Non-GAAP Financial Measures" and the reconciliation tables below for important details regarding Coupa's non-GAAP measures. Coupa defines free cash flows as operating cash flows less purchases of property and equipment.

Recent Business Highlights:

  • Coupa added new customers in Q1, including but not limited to: Ingersoll Rand, First American Financial Corporation, Assa Abloy, COMPAREX AG, Fastweb, Just Energy, Evotec AG, Renew Financial, Simons Foundation, Vituity, Monash University, Klöckner & Co SE, Arena Offshore, PRA Group, Snowflake, Couchbase, and NAL Resources Management.
     
  • Coupa announced new product innovations to advance the company's BSM capabilities, including enhancements to community intelligence and additional user-centric experiences that will provide businesses even more visibility into spend, processes, and performance. 
     
  • Coupa commissioned a study by The Economist Intelligence Unit which polled more than 500 CFOs and senior finance executives. The study revealed that greater than 60% of finance executives lack complete visibility into the transactions within their organizations. In addition, 76% think leveraging new technologies or improving processes would enable their organizations to work better with other functions to execute corporate finance strategy.
     
  • Coupa hosted its sixth annual INSPIRE conference where nearly 2,000 customers, prospective customers, partners, industry analysts and employees, plus many more online, convened to collaborate and innovate on BSM.
     
  • Coupa was named as a leader in two IDC MarketScape Reports: the IDC MarketScape report for Worldwide SaaS and Cloud Enabled Sourcing Applications and the IDC MarketScape report for Worldwide SaaS and Cloud Enabled Procure-to-Pay Applications.
     
  • Coupa hired experienced business executive Hiroyuki Okuma as Japan country manager, where he will be responsible for driving strategy, brand awareness, sales execution, partner alliances, and customer success.

Conference Call Information:

Coupa will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today.

  • Parties in the U.S. and Canada can access the call by dialing (888) 437-9445, using conference code 7508183.
  • International parties can access the call by dialing (719) 325-2106, using conference code 7508183.

A live webcast will be accessible on Coupa's investor relations website at http://investors.coupa.com. A replay will be available through the same link. A telephonic replay of the conference call will be available through Monday, June 11, 2018. To access the replay, parties in the U.S. and Canada should call (888) 203-1112 and enter conference code 7508183. International parties should call (719) 457-0820 and enter conference code 7508183.

Non-GAAP Financial Measures:

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures that exclude share-based compensation expense, amortization of intangible assets acquired, amortization of debt discount and issuance costs from convertible notes, and related tax effects. Coupa believes these non-GAAP measures are useful in evaluating its operating performance and regularly reviews these measures as it evaluates its business.

Coupa believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Coupa believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Coupa uses these non-GAAP measures in conjunction with GAAP measures as part of its overall assessment of its performance, including the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. The definitions of its non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, Coupa's non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Coupa compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. Coupa encourages investors and others to review its financial information in its entirety, not to rely on any single financial measure and to view its non-GAAP measures in conjunction with GAAP financial measures.  Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.

With respect to Coupa's guidance as provided under "Business Outlook" above, Coupa has not reconciled its expectations for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because certain items excluded from non-GAAP operating loss and net loss, such as charges related to share-based compensation expense, amortization of acquired intangible assets, amortization of debt discount and issuance costs from our convertible notes, and related tax effects, cannot be reasonably calculated or predicted at this time. The effect of these excluded items may be significant.

Coupa also uses key metrics such as cumulative spend under management, which represents the aggregate amount of money that has been transacted through its core platform for all of its customers collectively since it launched its platform. Coupa calculates this metric by aggregating the actual transaction data, such as invoices, purchase orders and expenses, from customers on its core platform. While Coupa does not believe this metric is directly correlated to its financial results, it believes that the adoption of its core platform, as evidenced by growth in cumulative spend under management, drives additional value to its customers, which will enhance its ability to acquire new customers and to increase renewals and upsells to existing customers.

Forward-Looking Statements:

This release includes forward-looking statements. All statements other than statements of historical facts, including the statements of management and statements in "Business Outlook" are forward-looking statements. These forward-looking statements are based on Coupa's current expectations and projections about future events and trends that Coupa believes may affect its financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially, including: Coupa has a limited operating history, which makes it difficult to predict its future operating results; if Coupa is unable to attract new customers, the growth of its revenues will be adversely affected; because its platform is sold to large enterprises with complex operating environments, Coupa encounters long and unpredictable sales cycles; risks and liabilities related to breach of its security measures or unauthorized access to customer data; the markets in which Coupa participates are intensely competitive; Coupa's business depends substantially on its customers renewing their subscriptions and purchasing additional subscriptions; if Coupa fails to develop widespread brand awareness cost-effectively, its business may suffer; and if Coupa fails to manage its recent rapid growth effectively, Coupa may be unable to execute its business plan, maintain high levels of service, or adequately address competitive challenges.

These and other risks and uncertainties that could affect Coupa's future results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Coupa's annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 28, 2018, which is available at investors.coupa.com and on the SEC's website at www.sec.gov. Further information on potential risks that could affect actual results will be included in other periodic filings Coupa makes with the SEC.

The forward-looking statements in this release reflect Coupa's expectations as of June 4, 2018. Coupa undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in its expectations.

About Coupa Software

Coupa Software (NASDAQ:COUP) is the leading provider of business spend management, or BSM, solutions. We offer a comprehensive, cloud-based BSM platform that has connected hundreds of organizations with more than four million suppliers globally. Our platform provides greater visibility into and control over how companies spend money. Using our platform, businesses are able to achieve real, measurable value and savings that drive their profitability. Learn more at www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.

Investor Relations:
NMN Advisors for Coupa
Nicole Noutsios
(510) 315-1003
ir@coupa.com

Media Contact:
Global Public Relations
Stefanie Gordish
(415) 590-9722
stefanie.gordish@coupa.com

     
COUPA SOFTWARE INCORPORATED  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)   
(unaudited)  
           
    Three Months Ended  
    April 30,  
    2018   2017  
Revenues:          
Subscription services   $ 49,966     $ 35,664    
Professional services and other     6,386       5,473    
Total revenues     56,352       41,137    
Cost of revenues:          
Subscription services     11,174       7,996    
Professional services and other     6,951       5,501    
Total cost of revenues     18,125       13,497    
Gross profit     38,227       27,640    
Operating expenses:          
Research and development     13,201       9,171    
Sales and marketing     24,660       20,679    
General and administrative     12,435       8,177    
Total operating expenses     50,296       38,027    
Loss from operations     (12,069 )     (10,387 )  
Interest expense     (2,973 )        
Interest income and other, net     78       433    
Loss before provision for income taxes     (14,964 )     (9,954 )  
Provision for income taxes     490       84    
Net loss   $ (15,454 )   $ (10,038 )  
Net loss per share attributable to common stockholders, basic and diluted   $ (0.28 )   $ (0.20 )  
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted     55,873       50,577    
           
 
COUPA SOFTWARE INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
         
    April 30,   January 31,
    2018   2018
Assets        
Current assets:        
Cash and cash equivalents   $ 430,030     $ 412,903  
Accounts receivable, net of allowances     47,052       61,366  
Prepaid expenses and other current assets     11,497       10,952  
Deferred commissions, current portion     4,883       3,756  
Total current assets     493,462       488,977  
Property and equipment, net     5,411       5,186  
Deferred commissions, net of current portion     12,541       3,896  
Goodwill     44,410       44,410  
Intangible assets, net     18,946       20,020  
Other assets     5,326       9,961  
Total assets   $ 580,096     $ 572,450  
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable   $ 1,875     $ 1,342  
Accrued expenses and other current liabilities     28,573       26,643  
Deferred revenue, current portion     120,458       125,714  
Total current liabilities     150,906       153,699  
Convertible senior notes, net     165,758       163,010  
Deferred revenue, net of current portion     1,428       2,316  
Other liabilities     12,874       12,880  
Total liabilities     330,966       331,905  
Stockholders' equity:        
Preferred stock, $0.0001 par value per share            
Common stock, $0.0001 par value per share     6       6  
Additional paid-in capital     463,911       445,318  
Accumulated other comprehensive loss     (258 )     (298 )
Accumulated deficit     (214,529 )     (204,481 )
Total stockholders' equity     249,130       240,545  
Total liabilities and stockholders' equity   $ 580,096     $ 572,450  
         
       
COUPA SOFTWARE INCORPORATED 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(In thousands) 
(unaudited)
         
    Three Months Ended
    April 30,
    2018   2017
Cash flows from operating activities        
Net loss   $ (15,454 )   $ (10,038 )
Adjustments to reconcile net loss to net cash provided by operating activities:        
Depreciation and amortization     2,015       1,536  
Amortization of deferred commissions     1,192       1,040  
Amortization of debt discount and issuance costs     2,748        
Stock-based compensation     11,312       5,277  
Other non-cash items           105  
Changes in operating assets and liabilities:        
Accounts receivable     14,314       12,570  
Prepaid expenses and other current assets     (1,679 )     (336 )
Other assets     161       (660 )
Deferred commissions     (1,927 )     (887 )
Accounts payable     534       31  
Accrued expenses and other liabilities     3,822       529  
Deferred revenue     (4,402 )     (2,224 )
Net cash provided by operating activities      12,636       6,943  
Cash flows from investing activities        
Acquisitions, net of cash acquired     (1,178 )     (140 )
Purchases of property and equipment     (1,124 )     (996 )
Net cash used in investing activities      (2,302 )     (1,136 )
Cash flows from financing activities        
Payment of issuance costs for the issuance of senior convertible notes     (639 )      
Proceeds from issuance of common stock, net of underwriting discounts, commissions and offering costs           23,040  
Proceeds from the exercise of common stock options     3,295       4,527  
Proceeds from issuance of common stock for employee stock purchase plan     4,137       3,026  
Net cash provided by financing activities      6,793       30,593  
Net increase in cash, cash equivalents, and restricted cash     17,127       36,400  
Cash, cash equivalents, and restricted cash at beginning of year     412,976       201,972  
Cash, cash equivalents, and restricted cash at end of period   $ 430,103     $ 238,372  
         
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets        
Cash and cash equivalents   $ 430,030     $ 238,121  
Restricted cash, included in prepaid expenses and other current assets           251  
Restricted cash, included in other assets     73        
Total cash, cash equivalents, and restricted cash   $ 430,103     $ 238,372  
       
                     
 COUPA SOFTWARE INCORPORATED   
 Three Months Ended April 30, 2018   
 Reconciliation of GAAP to Non-GAAP Financial Measures   
 (in thousands, except per share amounts)   
 (unaudited)   
   GAAP     Share-Based
Compensation
Expenses
 
   Amortization
of Acquired
Intangible
Assets
 
   Amortization of
Debt Discount
and Issuance
Costs
 
   Non-GAAP   
Costs and expenses:                    
Costs of subscription services $ 11,174     $ (831 )   $ (784 )   $     $ 9,559    
Costs of professional services and other   6,951       (946 )                 6,005    
Gross profit   67.8 %     3.2 %     1.4 %      0.0  %     72.4 %  
Research and development   13,201       (2,547 )     -             10,654    
Sales and marketing   24,660       (2,970 )     (290 )           21,400    
General and administrative   12,435       (4,018 )                 8,417    
Income (loss) from operations   (12,069 )     11,312       1,074             317    
Operating margin   -21.4 %     20.1 %     1.9 %      0.0  %     0.6 %  
Interest expense   (2,973 )                 2,748       (225 )  
Interest income and other, net   78                         78    
Income (loss) before provision for income taxes   (14,964 )     11,312       1,074       2,748       170    
Provision for income taxes   490       169       48             707    
Net loss   (15,454 )     11,143       1,026       2,748       (537 )  
Net loss per share attributable to common stockholders, basic and diluted (1) $ (0.28 )               $ (0.01 )  
   
(1) Calculated based upon 55,873 basic and diluted weighted-average shares of common stock  
                     
                     
                     
                     
 COUPA SOFTWARE INCORPORATED   
 Three Months Ended April 30, 2017   
 Reconciliation of GAAP to Non-GAAP Financial Measures   
 (in thousands, except per share amounts)   
 (unaudited)   
   GAAP     Share-Based
Compensation
Expense
 
   Amortization
of Acquired
Intangible
Assets
 
   Amortization of
Debt Discount
and Issuance
Costs
 
   Non-GAAP   
Costs and expenses:                    
Costs of subscription services $ 7,996     $ (355 )   $ (486 )   $     $ 7,155    
Costs of professional services and other   5,501       (563 )                 4,938    
Gross profit   67.2 %     2.2 %     1.2 %      0.0  %     70.6 %  
Research and development   9,171       (1,152 )                 8,019    
Sales and marketing   20,679       (1,600 )                 19,079    
General and administrative   8,177       (1,607 )                 6,570    
Loss from operations   (10,387 )     5,277       486             (4,624 )  
Operating margin   -25.2 %     12.8 %     1.2 %      0.0  %     -11.2 %  
Interest expense                              
Interest income and other, net   433                         433    
Loss before provision for income taxes   (9,954 )     5,277       486             (4,191 )  
Provision for income taxes   84       175                   259    
Net loss   (10,038 )     5,102       486             (4,450 )  
Net loss per share attributable to common stockholders, basic and diluted (1) $ (0.20 )               $ (0.09 )  
   
(1) Calculated based upon 50,577 basic and diluted weighted-average shares of common stock  
   
 
 COUPA SOFTWARE INCORPORATED   
 Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows   
 (A Non-GAAP Financial Measure)   
 (in thousands)   
 (unaudited)   
    Three Months Ended  
    April 30,  
    2018   2017  
                   
Net cash provided by operating activities   $ 12,636     $ 6,943    
Less: purchases of property and equipment     (1,124 )     (996 )  
Free cash flows   $ 11,512     $ 5,947    
                   

71718323f7.jpg

Primary Logo

This article was written by cool news network.

Get the latest news delivered to your inbox

Follow us on social media networks

NEXT Insider Buys Of The Week: Dish Network, Kinder Morgan, Revlon